Cadence Minerals

Overview
Price performance
Financials
Research
Thematics

Cadence Minerals is an early-stage investment and development company in the mining space. Its public equity holdings include rare earths and lithium developers, and its non-listed interests include a 32.6% interest in the Amapá iron ore restart project in Brazil.

Cadence continues to de-risk and optimise Amapá, with recent work indicating a potential 33% (US$63.2m) reduction in capital costs for the beneficiation plant and a 4.8% increase in forecast production of product. Studies are continuing to reduce mining costs and potentially upgrade the main product from 65% Fe to 67% Fe, which attracts a premium.

Latest Insights

Metals & Mining |
Update

04.04.24

Cadence Minerals — Amapá optimisation adds value

Metals & Mining |
Update

03.11.23

Cadence Minerals — Real progress, real value

Metals & Mining |
Flash note

31.08.23

Cadence Minerals — Sonora project update

Metals & Mining |
Initiation

06.07.23

Cadence Minerals — A mispriced miner

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Sector

Metals & Mining

Equity Analyst

Andrew Keen

MD - Head of Content, Energy & Resources, Industrials

Andrey Litvin

Energy and Resources Analyst

Harry Kilby

Analyst

Key Management

Kiran Morzaria

CEO

Balance Sheet

Forecast net cash (£m)

0.3

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	(32.3)	(35.5)	(63.6)
Relative	(33.1)	(39.6)	(64.3)
52 week high/low	10.2p/3.2p

Financials

This year will be important for Cadence Minerals’ major asset, the Amapá iron ore project in Brazil. Cadence recently announced the results of an optimisation study that points to the potential to increase production by 4.8% and lower processing plant commissioning costs by 33%. An updated pre-feasibility study (PFS) level NPV will be published in the near future and we explore some of the sensitivities in this report. We have adjusted our valuation to reflect portfolio changes and the rise in Cadence’s stake in Amapá, although we have yet to include the value uplift of the optimisation of Amapá.